Off Lows, But Cheapening Consolidates

JGBs largely consolidated the moves flagged in our earlier bullet during the remainder of the morning, with futures hitting the lunch bell -19, while cash JGBs were little changed to 2.5bp cheaper across the curve. Moves in swaps were more measured, albeit with rates nudging higher, resulting in narrower swap spreads across almost all tenors.

• Recent headline flow has seen a government official confirm that the government’s choices for the BoJ leadership positions will appear in their respective lower house hearings on 24 February.
• 5-Year JGB supply provides the focal point this afternoon.